The Lumber Division of Waterway Industries produces and sells lumber that can be sold to outside customers orSwifty Corporation manufactures and sells high$-$priced motorcycles. The Engine Division produces and sells

engines to other motorcycle companies and internally to its Production Division. It has been decided that the

Engine Division will sell $30000$ units to the Production Division at $$1050$ a unit. The Engine Division, currently

operating at fall capacity, has a unit selling price of $$3550$ and unit variable costs and unit fixed costs of $$1050$ and

$$700,$ respectively. The Production Division is currently paying $$3300$ per unit to an outside supplier. Of this

amount, $$120$ per unit can be saved on internal sales from reduced selling expenses.

What is the minimum transfer price that the Engine Division should accept?

$$2500$

$$3430$

$$3550$

$$3300$

within the company to the Construction Division. The following data have been gathered for the coming period:

Lumber Division:

Capacity

$290000$ board feet

Price per board foot

$$3\mathrm{.}50$

Variable production cost per bd$.$ ft$.$

$$1\mathrm{.}25$

Variable selling cost per bd$.$ ft$.$

$$0\mathrm{.}50$

Construction Division:

Board feet needed

$65000$

Outside price paid per bd$.$ ft$.$

$$2\mathrm{.}00$

If the Lumber Division sells to the Construction Division, $$0\mathrm{.}30$ per board foot can be saved in ships costs

If the Lumber Division has sufficient excess capacity to fulfill the Construction Division's needs, what will be the

effect on the company's overall contribution margin?

Decrease by $$94250$

Increase by $$34125$

Increase by $$35750$

Decrease by $$32500$Coronado Company's Selling Division's unit sales price is $$27$ and its unit variable cost is $$15.$ Its capacity is $10000$

units. Unit fixed cost are $$7.$ Current outside sales are $8000$ units. What is the Selling Division's opportunity cost

per unit from selling $2000$ units to the Purchasing Division?

$$12$

$$27$

$$0$

$$5$